NOTES TO THE FINANCIAL STATEMENTS (CONT’D) FRONTKEN CORPORATION BERHAD 200401012517 (651020-T) ANNUAL REPORT 2025 91 3. MATERIAL ACCOUNTING POLICY INFORMATION (CONT’D) Financial Instruments (Cont’d) (i) Financial Assets (Cont’d) Financial Assets at Amortised Cost The financial assets are initially measured at fair value plus transaction costs except for trade receivables without significant financing component which are measured at transaction price only. Subsequent to the initial recognition, all financial assets are measured at amortised cost less any impairment losses. (ii) Financial Liability Financial Liabilities at Amortised Cost The financial liabilities are initially measured at fair value less transaction costs. Subsequent to the initial recognition, the financial liabilities are measured at amortised cost. (iii) Equity Ordinary Shares Ordinary shares are recorded on initial recognition at the proceeds received less directly attributable transaction costs incurred. The ordinary shares are not remeasured subsequently. Treasury Shares Treasury shares are recorded on initial recognition at the consideration paid less directly attributable transaction costs incurred. The treasury shares are not remeasured subsequently. No gain or loss is recognised in profit or loss on the purchase, sale, issue or cancellation of the treasury shares. If such shares are issued by resale, any difference between the sales consideration received and the carrying amount of the treasury shares is recognised in equity. Where treasury shares are cancelled, their carrying amounts are shown as a movement in retained profits. Property, Plant and Equipment All items of property, plant and equipment are initially measured at cost. Subsequent to initial recognition, all property, plant and equipment, other than freehold land, are stated at cost less accumulated depreciation and any impairment losses. Freehold land is not depreciated. Depreciation on other property, plant and equipment is calculated using the straight-line method to allocate their depreciable amounts over the estimated useful lives. The principal annual depreciation rates are: Freehold buildings 25 - 50 years Long-term leasehold buildings 60 years Land improvement 14% Factory and office renovation 5% - 10% Plant and machinery 10% - 20% Workshop tools 10% - 20% Office equipment 10% - 33.3% Furniture and fittings 10% - 33.3% Motor vehicles 10% - 20% Computers 33.3%
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